``The market is reflecting a short-term view of the economy,'' said a BSE broker hinting at the rumours of the big bull being back at the bourse. Domestic and foreign institutional participants continued to be net sellers on the BSE. While the net FII sales were pegged at Rs 2 crore, net sales of domestic institutions was marked at a high of Rs 9 crore.

The sharp rally at the ACC counter was, however, attributed to the increased FII purchases at the counter. The stock was locked at the day's high of Rs 1,075 on the BSE clocking a phenomenal volume of over 4.68 lakh shares. According to market sources, Morgan Stanley broking was reported to have placed buy orders to the tune ofover 50,000 shares. The stock was traded in the band of Rs 980 and Rs 1,075, the intra-day's low and high respectively, to finally close at the circuit price. On the NSE, the stock was locked at Rs 1,063.

Similarly, Tisco also flared up to trade at the day's highest bid of Rs 122.40 to finally close at Rs 122.10.

The upward rally at the Pentafour Software counter was shortlived. With the market having discounted the news of the company's move to increase FII participation to 30 per cent, the stock was hammered down to the day's low of Rs 672. However, short covering led to a minor rise with the stock closing at Rs 679.79, with a neat volume of 31.69 lakh shares.

Among the info-tech counters, Infosys Technologies, Software Solution, Leading Edge, BFL Software and Zee witnessed considerable profit booking.

In the negotiated segment of the BSE, the UTI Mastergain counter witnessed a single deal of 1 lakh shares reported at Rs 8.85. Heavy weight stocks like BHEL witnessed a sharp rise of over 2 per cnetamidst huge volume of 3.59 lakh shares on the NSE. Market sources attributed the gains made to the attempts made by FIIs to prop up the NAVs of their funds.

According to market sources, in the absence of enough liquidity in the demat mode, speculators would make every attempt to influence the price of stocks which would be traded in the compulsory demat mode from December 30 onwards on the NSE. Twelve stocks which includes, Larsen, SBI, Bank of India, HDFC, ICICI, Wipro, VSNL, BPCL, BSES, IDBI, IndusInd Bank and Infosys Technologies would be traded in the compulsory demat form Wednesday on the NSE. On the BSE these stocks would be traded in the compulsory demat mode from January 4.